MIRA INFORM REPORT

Report Date :

11.08.2012

IDENTIFICATION DETAILS

Name :	EXPRESS PUBLICATIONS (MADURAI) LIMITED
Formerly Known As :	INDIAN EXPRESS (MADURAI) LIMITED
Registered Office :	No.29, II Main Road, Industrial Estate, Ambattur, Chennai – 600 058, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.04.1959
Com. Reg. No.:	18-3776
Capital Investment / Paid-up Capital :	Rs.180.000 Millions
CIN No.: [Company Identification No.]	U22121TN1959PLC003776
TAN No.: [Tax Deduction & Collection Account No.]	CMBE03024A / CMBE03150A / MRIE00260B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Newspaper and Magazine Publishers.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 5300000
Status :	Satisfactory
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a part of Goenka Group who are considered to be media giant having vast circulation of their daily newspapers Indian Express. Financial position of the company can be regarded as moderate having some accumulated losses being recorded by the company. However, trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB+ (Long Term)
Rating Explanation	This rating the considered to have moderate risk of default regarding timely servicing of obligation.
Date	November 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office / Corporate Office:	No.29, II Main Road, Industrial Estate, Ambattur, Chennai – 600 058, Tamilnadu, India
Tel. No.:	91-44-23457503
Fax No.:	91-44-23457619
E-Mail :	tkb@epmltd.com tbk@expressbuzz.com tkb@newindiaexpress.com Chennai@epmltd.com
Website :	www.epmltd.com
Centres:	Located at · Chennai · Madurai · Coimbatore · Tiruchy · Bangalore · Mangalore · Belgaum · Shimoga · Kochi · Trivandrum · Kozhikode · Hyderabad · Vijayawada · Visakhapatnam · Bhubaneswar

DIRECTORS

As on 30.09.2011

Name :

Mr. Manoj Kumar Sonthalia

Designation :

Director

Address :

43, Harrington Road, Chetpet, Chennai – 600 031, Tamilnadu, India

Date of Birth/Age :

16.09.1957

Qualification:

B.Com

Experience:

30 Years

Date of Appointment :

19.03.1999

DIN No.:

00021297

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U22121TN1959PTC046416	SIDDHARTH MEDIA HOLDINGS PRIVATE LIMITED	Director	20/07/1981	20/07/1981	-	Active	NO
2	U22121TN1959PLC003776	EXPRESS PUBLICATIONS (MADURAI) LIMITED	Managing director	01/11/2009	29/10/1982	-	Active	NO
3	U22121TN1979PTC046515	STERLING NEWSPAPERS PRIVATE LIMITED	Director	30/09/1990	30/09/1990	-	Under liquidation	NO
4	L24117RJ1991PLC006307	PODDAR PIGMENTS LIMITED	Director	28/02/1994	28/02/1994	-	Active	NO
5	U99999DL1951PLC002023	THE INDIAN NEWSPAPER SOCIETY.	Director	19/09/1995	19/09/1995	-	Active	NO
6	U92200DL1959NPL003169	UNITED NEWS OF INDIA	Director	29/01/1999	29/01/1999	14/09/2007	Active	NO
7	U22219TN1999PTC048506	EXPRESS NEWS SERVICE PRIVATE LIMITED	Director	19/03/1999	19/03/1999	-	Active	NO
8	U22121TN2001PLC048000	EXPRESS PUBLICATIONS (CHENNAI) LIMITED	Managing director	06/12/2011	07/11/2001	-	Active	NO
9	U22121TN1970PLC005916	DINAMANI PUBLICATIONS LIMITED	Director	09/09/2004	09/09/2004	-	Active	NO
10	U22300KA2005PLC035885	KANNADA PRABHA PUBLICATIONS LIMITED	Director	23/03/2005	23/03/2005	-	Active	NO
11	U24999MH1948NPL006309	AUDIT BUREAU OF CIRCULATIONS	Director	01/09/2006	01/09/2006	15/09/2008	Active	NO
12	U72900TN2012PTC085731	CLARIS GLOBAL SOLUTIONS (INDIA) PRIVATE LIMITED	Director	03/05/2012	03/05/2012	-	Active	NO

Name :

Mr. Krishna Kumar Dalmia

Designation :

Director

Address :

6 A, Dr. Rajendra Prasad Sarani, Kolkata – 700 001, West Bengal, India

Date of Birth/Age :

12.01.1937

Date of Appointment :

08.01.2003

DIN No.:

00636064

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65993WB1960PTC024855	RATANLAL DALMIA PRIVATE LIMITED	Director	26/10/1960	26/10/1960	-	Active	NO
2	U01132WB1971PTC028192	QUALITY TEA PRODUCING CO PRIVATE LIMITED	Director	23/09/1972	23/09/1972	-	Active	NO
3	U65993WB1984PTC037130	M L D AND SONS PRIVATE LIMITED	Director	27/01/1984	27/01/1984	-	Active	NO
4	U22121TN1959PLC003776	EXPRESS PUBLICATIONS (MADURAI) LIMITED	Director	08/01/2003	08/01/2003	-	Active	NO
5	U22300KA2005PLC035885	KANNADA PRABHA PUBLICATIONS LIMITED	Additional director	17/03/2010	17/03/2010	30/06/2011	Active	NO

Name :

Mr. Shiv Shankar Poddar

Designation :

Director

Address :

No.8, Numgambakkam, High Road, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

10.09.1949

Date of Appointment :

08.01.2003

DIN No.:

00058025

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65191TN1985PTC012457	TRUSTLINE CAPITAL FINANCE PRIVATE LIMITED	Director	09/12/1985	09/12/1985	-	Active	NO
2	L24117RJ1991PLC006307	PODDAR PIGMENTS LIMITED	Managing director	01/10/2010	28/02/1994	-	Active	NO
3	U22121TN1959PLC003776	EXPRESS PUBLICATIONS (MADURAI) LIMITED	Director	08/01/2003	08/01/2003	-	Active	NO
4	L65991TN1964PLC005259	AMBATTUR ENTERPRISES LIMITED	Director	31/05/2006	31/05/2006	-	Active	NO
5	U51909TN1982PTC059417	UDDHAV TRADING PRIVATE LIMITED	Director	03/07/2006	03/07/2006	-	Active	NO

Name :

Mr. Thayil Jacob Sony George

Designation :

Director

Address :

166A, Rajmahal Vilas, Bangalore – 560 080, Karnataka, India

Date of Birth/Age :

08.05.1928

Date of Appointment :

29.04.2003

DIN No.:

00040022

Name :

Mr. Sreekumar Karunakaran

Designation :

Director

Address :

No. 38/1963, Plakkat Colony, Eleamkulam Road, Ernakulam – 682017, Kerala, India

Date of Birth/Age :

27.11.1957

Date of Appointment :

22.04.2010

DIN No.:

00335407

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999PY2003PTC001704	AMRITA ENTERPRISES PRIVATE LIMITED	Director	23/02/2006	23/02/2006	-	Active	NO
2	U22121TN1959PLC003776	EXPRESS PUBLICATIONS (MADURAI) LIMITED	Director	28/09/2010	22/04/2010	-	Active	NO
3	U72900PY2008PTC002201	AMRITA TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	29/07/2010	29/07/2010	-	Active	NO
4	U73100PY2011NPL002610	AMRITA CENTRE FOR RESEARCH AND DEVELOPMENT	Director	27/07/2011	27/07/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Tenkasi Krishna Bhgiratharama Venkataraman
Designation :	Company Secretary
Address :	41, Sapthagiri Colony, Jaffar Khan Pet, Chennai – 600 083, Tamilnadu, India
Date of Birth/Age :	15.07.1932
Date of Appointment :	15.04.1992
PAN No.:	AAGPV1075L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Siddharth Media Holdings Private Limited (India)	1799994
Manoj Kumar Sonthalia	1
Kalpana Sonthalia	1
Siddhartha Sonthalia	1
S.V. Gopalkrishnan	1
Sathi Suresh	1
N. Gopalan	1
Total	1800000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Foreign Holding (FIIs/FCLs/NRIs/OCBs)	99.9996
Bodies Corporate (Not Mentions above)	0.0002
Directors/Relatives of Directors	0.0002
Total	100.00

BUSINESS DETAILS

Line of Business :	Newspaper and Magazine Publishers.
Products / Services :	· Publication of Newspapers and Periodicals · Advertisement

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

• Indian Bank, Harbour Branch, No.66, Rajaji Salai, Chennai – 600 001, Tamilnadu, India
• State Bank of India, Commercial Branch, Justice G.N. Vaidya Marg, Mumbai – 400 023, Maharashtra, India
• Axis Bank Limited, Dr. Radhakrishnan Salai, Chennai – 600 004, Tamilnadu, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Fully convertible debentures secured	160.000	160.000
Rupee term loans banks secured	159.358	235.673
Rupee term loans financial institutions secured	9.612	0.321
Working capital loans banks secured	265.704	255.559
Total	594.674	651.553
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans others unsecured	33.500	63.573
Public deposits unsecured	526.317	479.548
Fixed deposits unsecured	94.554	129.970
Total	654.371	673.091

Banking Relations :	--
Financial Institutions :	ELGI Finance Limited, ELGI House, Trichy Road, Coimbatore, Tamilnadu, India
Auditors :
Name :	Swami and Moorthy Chartered Accountants
Address :	2,B Deshmaa Green Park, Near BSNL Tower, Subha Shree Nagar Extension Phase I, Mugalivakkam, Porur, Chennai - 600 125, Tamilnadu, India
PAN No.:	AADPR2657P
Holding Company :	Siddharth Media Holdings Private Limited CIN No.: U22121TN1959PTC046416
Wholly Owned Subsidiary:	Express Network Private Limited CIN No.: U22219TN1999PTC048505 Express Publications (Chennai) Limited CIN No.: U22121TN2001PLC048000 Dinamani Publications Limited CIN No.: U22121TN1970PLC005916 Kannada Prabha Publications Limited CIN No.: U22300KA2005PLC035885 Express News Service Private Limited CIN No.: U22219TN1999PTC048506

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs.180.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs.180.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		180.000	180.000	180.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2035.384	1992.084	1947.084
4] (Accumulated Losses)		(869.608)	(786.346)	(890.434)
NETWORTH		1345.776	1385.738	1236.650
LOAN FUNDS
1] Secured Loans		594.674	651.553	659.907
2] Unsecured Loans		654.371	673.091	559.147
TOTAL BORROWING		1249.045	1324.644	1219.054
DEFERRED TAX LIABILITIES		105.377	119.951	111.955
TOTAL		2700.198	2830.333	2567.659
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2069.633	2004.987	2043.795
Capital work-in-progress		0.639	1.084	1.085
INVESTMENT		326.554	326.867	327.997
DEFERREX TAX ASSETS		36.636	74.985	105.711
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.187	117.217	39.754
	Sundry Debtors	525.748	489.044	427.092
	Cash & Bank Balances	144.755	387.822	144.633
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	283.748	182.497	233.517
Total Current Assets		1021.438	1176.580	844.996
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	520.596	533.142	557.349
	Other Current Liabilities	134.691	100.207	86.706
	Provisions	99.415	120.821	129.588
Total Current Liabilities		754.702	754.170	773.643
Net Current Assets		266.736	422.40	71.353
MISCELLANEOUS EXPENSES		0.000	0.000	17.718
TOTAL		2700.198	2830.333	2567.659

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1860.662	1942.330	2059.022
		Other Income	217.856	329.308	92.117
		TOTAL (A)	2078.518	2271.638	2151.139
Less	EXPENSES
		Consumption Material Changes Inventories	774.894	817.131	949.280
		Manufacturer Service Cots	190.214	200.584	232.397
		Employee Related Expenses	234.204	227.759	723.426
		Administrative Selling Other Expenses	668.096	588.952	0.066
		TOTAL (B)	1867.408	1834.426	1905.169
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		211.110	437.212	245.970
Less	FINANCIAL EXPENSES (D)		53.580	47.640	171.549
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		157.530	389.572	74.421
Less/ Add	DEPRECIATION/ AMORTISATION (F)		170.604	178.593	33.623
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(13.074)	210.979	40.798
Less	TAX (H)		26.888	61.891	3.674
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(39.962)	149.088	37.124
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(786.346)	(890.434)	(939.033)
Add	Foreign Currency Monetary Item Translation Difference A/c		0.000	0.000	17.718
Add	Deferred Tax Liability (Net)		0.000	0.000	(6.243)
Less	APPROPRIATIONS
		Transfer to Debenture Redemption Reserve Account	43.300	45.000	0.000
	BALANCE CARRIED TO THE B/S		(869.608)	(786.346)	(890.434)
	EARNINGS IN FOREIGN CURRENCY
		Advertisement Revenue	NA	0.016	0.000
	TOTAL EARNINGS		NA	0.016	0.000
	IMPORTS
		Raw Materials and Spare parts	NA	335.916	277.376
	TOTAL IMPORTS		NA	335.916	277.376
	Earnings/(Loss) Per Share (Rs.)		(22.20)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.92	6.56	1.72
Net Profit Margin (PBT/Sales)	(%)	0.70	10.86	1.98
Return on Total Assets (PBT/Total Assets}	(%)	1.28	17.93	1.41
Return on Investment (ROI) (PBT/Networth)		0.01	0.15	0.03
Debt Equity Ratio (Total Liability/Networth)		1.49	1.50	1.61
Current Ratio (Current Asset/Current Liability)		1.35	1.56	1.09

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note:

The situation of the registered office has been shifted from Express Estates, Anna Salai, Chennai – 600 002, Tamilnadu to the present address w.e.f. 02.07.2006.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2011)

i) Claims against the company not acknowledged as debts Rs.237.000 Millions

ii) In respect of defamation suits filed against the company - Amounts not ascertainable.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U22121TN1959PLC003776
Name of the company	EXPRESS PUBLICATIONS (MADURAI) LIMITED
Address of the registered office or of the principal place of business in India of the company	No.29, II Main Road, Industrial Estate, Ambattur, Chennai – 600 058, Tamilnadu, India Email: tkb@newindianexpress.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10023967
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	Indian Bank, Harbour Branch, No.66, Rajaji Salai, Chennai – 600 001, Tamilnadu, India E-Mail: crm3harbour@gmail.com
Nature of instrument creating charge	Short Term Loan of a sum of Rs.37.500 Millions has been repaid on 6.07.2011 and as on date there is no liability towards the above said loan.
Date of instrument Creating the charge	29.12.2011
Amount secured by the charge	Rs.268.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Short Term Loan of Rs.37.500 Millions @ 15% has been repaid on 06/07/2011 Terms of Repayment Repaid in full within 3 months. Margin 25% margin on the short term loan has been repaid. Extent and Operation of the charge No: 36,"Express House" of Kochi corporation in S.No:338/2 and 5 and 339/1 and 2, Ernakulam Village, Kaloor, Kochi, Kerala, India
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Property located under survey No:338/2 and 5 and 339/1 and 2, within the Ernakulam Village, Kanayayanur Taluk, Ernakulam District with building No:36, Express house of Kochi Corporation, Kaloor, Kochi.
Date of instrument modifying the charge	27.06.2011
Particulars of the present modification	The Company has repaid the Short term loan of Rs.37.500 Millions within 3 months on 6.07.2011 as per the Sanction Ticket dated 21.04.2011. The existing Mortgage I and II loans of Rs. 140.000 Millions, Term Loan of Rs.60.000 Millions and Fresh term loan of Rs.50.000 Millions dated 27.06.2011 totalling to Rs.250.000 Millions continues.

AS PER WEBSITE DETAILS

Subject (Formerly Indian Express (Madurai) Limited) was founded by Late Shri Ramnath Goenka, along with other companies in the Indian Express Group. The Company was incorporated on 11th April 1959 under the Indian Companies Act, 1956 and has its Registered Office at Express Garden, 29 Second Main Road, Ambattur Industrial Estate, Chennai 600 058.

The Company now form part of Express (Madurai) Group owned and managed by Shri Manoj Kumar Sonthalia, the grandson of Late Shri Ramath Goenka.

Express (Madurai) Group is an independent Group, Publishing Newspapers and Periodicals in the States of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Orissa and Union Territories of Pondicherry, Andaman and Nicobar Islands, Enam and Lakshadweep. It brings out its publication of newspaper and periodicals from 14 Centres viz. Chennai, Madurai, Coimbatore, Tiruchy, Bangalore, Mangalore, Belgaum, Shimoga, Kochi, Trivandrum, Kozhikode, Hyderabad, Vijayawada, Visakhapatnam and Bhubaneswar. It also, has office in the cosmopolitan cities of Calcutta, Mumbai and New Delhi.

The Company's publications include Dailies viz. The New Indian Express in English (the southern editions of The Indian Express renamed as "The New Indian Express", effective from 28-12-98), Dinamani in Tamil, and Kannada Prabha in Kannada. In adition to dailies, the company also brings out magazines viz., Cinema Express in Tamil a fortnightly, Tamilan Express a weekly in Tamil, Samakalika Malayalam Varika, a weekly in Malayalam.

The Company is professionally managed with well qualified and experienced people holding charge of different departments.

The Company's publications are popular and commands a special readership.

FIXED ASSETS:

• Goodwill
• Land
• Land and Building at Hyderabad
• Buildings
• Publication Title Rights
• Plant and Machinery and Office Equipment
• Furniture and Fixtures
• Vehicles
• Library

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.34
UK Pound	1	Rs.86.45
Euro	1	Rs.68.04

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.